Cardiex Faces Liquidity Crunch Despite Restructuring and Fundraising
Cardiex Limited reported a $3 million cash outflow in Q4 2025 but is banking on cost reductions and new product sales to improve its financial footing. The company also secured $6.5 million through a capital raise to bolster its runway.
- Q4 operating cash outflow of AUD 2.98 million
- Cash and equivalents at AUD 2.43 million, funding runway under one quarter
- 30% cost base reduction via operational restructuring
- Raised AUD 6.5 million through share placement and entitlement offer
- R&D tax incentive refund used to repay debt and support liquidity
Quarterly Cash Flow Snapshot
Cardiex Limited, a medical device company listed on the ASX, disclosed a cash outflow from operating activities of AUD 2.98 million for the quarter ending 30 June 2025. Despite this negative cash flow, the company ended the quarter with AUD 2.43 million in cash and cash equivalents. This leaves Cardiex with an estimated funding runway of just 0.82 quarters based on current cash burn, highlighting near-term liquidity pressures.
Operational Restructuring and Cost Savings
In response to financial pressures, Cardiex has undertaken significant operational restructuring, centralizing its engineering and development teams in Sydney and streamlining global operations. These efforts have reduced the company’s cost base by approximately 30%, a substantial saving that management expects will improve cash flow in the coming fiscal year. The full benefits of these cost efficiencies are anticipated to be realised in FY26, potentially turning around the current negative cash flow trend.
Revenue Growth from New and Existing Products
The quarter marked the first full period of sales for Cardiex’s CONNEQT Pulse and App, a new digital health solution complementing its existing ATCOR business. Early indications suggest that this new revenue stream, combined with ongoing sales from established products, is contributing positively to gross margins and cash flow. Management is optimistic that this momentum will continue to build, supporting the company’s path to sustainable profitability.
Capital Raising and Debt Management
To strengthen its financial position, Cardiex raised AUD 6.5 million through a share placement and entitlement offer during the quarter, with AUD 5.37 million received to date and the remainder expected in early FY26. The company also increased its R&D Term Loan Facility and used a AUD 1.46 million R&D tax incentive refund to repay part of its debt. These moves demonstrate proactive financial management aimed at extending the company’s runway and funding ongoing operations.
Outlook and Strategic Considerations
While Cardiex’s current cash position is tight, the board expresses confidence in the company’s ability to raise additional capital if necessary. The combination of operational efficiencies, new product revenue, and recent capital injections positions Cardiex to navigate its near-term funding challenges. Investors will be watching closely to see if these initiatives translate into improved cash flow and a longer funding runway in the coming quarters.
Bottom Line?
Cardiex’s near-term liquidity remains tight, but cost cuts and fresh capital raise set the stage for a potential turnaround.
Questions in the middle?
- Will revenue growth from CONNEQT Pulse and App sustain positive cash flow momentum?
- How soon will the full benefits of the 30% cost reduction impact the company’s financials?
- What are the risks if additional capital raising efforts fall short or are delayed?
